I know we've talked about CIM a little. I am thinking about beginning to rotate out of my mREITS AGNC and ARR and maybe our of CIM as well. Although my CIM holding is pretty small. But I have quite a chunk of change in AGNC and ARR. I knew when I went in that one day their earnings would drop and the dividends would follow. So I am thinking that I may begin dollar cost averaging out of both and into some other high yielding, more diverse, stocks and funds. I hate to lose the +19% yield but I can trade it in for a +13% that is going to be less effected when the economy recovers. I can take the 6% drop in dividends for that segment of my portfolio and still more than beat my retirement income goal.
Among those I am considering are: a pretty substantial increase in my GABUX holding plus adding some NCZ, PSEC, OXLC, HRZN, AGC and either GGN or GNT.
Fred you asked I respond for what its worth. PSEC I've owned. Fund Management in particular leaves a lot to be desired.Price has been beaten down and div too. I believe as a direct result of his arrogance. PGP is poised to rebound if europe gets its act together. Also been in Phk for a while,both monthly payers. Also like john Hancock. I am also nervous about REITS. Pure speculation is ACAD if they ever finish phase 3 of Alzhiemer trials. Large fund is now interested in same.
Golf,Just went to the driving range instead. Way to wet out there. I was bombing it long and straight. Unfortunately as we both know if it doesn't translate to the course it doesn't really matter. Felt good to hit a few though.Back to trading now!
Golf, On a side note. It is unseasonably warm here today.Might take a break from the computer screen and bust out the new Burner. Only problem is I will have to take a couple dozen balls cause there will be some major plugging going on.
Fred...I am sure you already know about this (others may not), reinvesting dividends is always a long term outstanding money maker...
"Compound returns always win"...a lot of investors now days keep trying to trade their self's wealthy...AGNC has a nice built in chart on their website that shows the value of compound reinvested dividends...
This chart is for investors that don't realize the value of long term reinvested dividends...I also understand that a lot of retired investors cannot reinvest their dividend because they need them to live on...
For the younger investors the is no substitute for compound reinvested returns...! $tagg...!
Fred...Your message are always outstanding and I follow them on a regular basis (my current plan is the same as yours)...You may want to take a look at...PER (yield 15%, mostly tax free), FCC (yield 14% pays monthly) and RNO (yield 9.4%, mostly tax free)...! Good luck and please post all of your selections in the future...! $tagg...!
Fred, I am doing the same thing. I am fearful that the day of the mREIT might be coming to an end. I have watched the dividends continue to decrease.I only have a small position in CIM as well. When they lowered the divi from .13 to.11 I could see the writing on the wall. I was hoping it would still climb a bit before the divi pay out so I could unload it. It is pretty much unchanged though. I guess I will pick up one more divi and then bail. I picked up some NCZ last week. I really like PSEC, just waiting for a good entry point.